Sorry CrissB. That wasn't the problem. Take a second to read through the post. I am well aware of the 8 light limit, though there really isn't an 8 light limit anymore. The engine switches lights on and off based on their relationship to the camera.
In any case, to summarize the problem: Part of my model was not being affected by dynamic lights.
The solution: Set the models POLYGON to on and reset the collision hull with c_setminmax.
I just wanted to clarify so that users wouldn't think it was a relatively simple number of lights problem. And I think it would benefit the community to understand the relationship between the collision hull and lighting. I have looked pretty hard and found no mention in the manual.